Paying Taxes Can Tax The Best Of Us: Difference between revisions
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Revision as of 00:39, 13 May 2026
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Because belonging to the increasing tax rate of upper brackets, a reduction of taxable income with the higher bracket saves you more tax than exact reduction during a lower class. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with what single person with a $100,000.
Now suppose that, as an alternative to leaving normal couple of bucks, I select to hand the waitress a $100 bill. Maybe I just scored a big business success and desire to share the game. Maybe I know from conversation she is a certain mother, therefore i figure the cash means an excellent more to her computer system does in my experience. Maybe I just need to impress her details a big shot I am. Should my motivation, noble or otherwise, unquestionably be a factor the actual world waitress' obligations to the U.S. Treasury? Clearly, the amount I am paying bears no rational relationship towards the service she rendered. In fairness, many would contend that the amount of some CEOs are paid bears no rational relationship to the quality of their services, mainly. CEO compensation is always taxable (Section 102 again), regardless of its merits.
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